DAVY VIEW

DraftKings performed very well in 2023. At the outset of the year, doubts were still present about its balance sheet and cost control. At the conclusion of the year, it is in the enviable position of having a clear scale advantage versus even the no.3 operator with a Q4 market share of 36% in sports and 28% in iGaming. Scale advantages in technology, product and customer acquisition are likely to remain medium-term competitive advantages. We update our price target to $39.50 and retain our ‘Neutral’ rating.